You are here: Home - Investing -

Investment managers back bosses’ pay clamp down

Written by:
The organisation that represents the UK asset management industry has called for a crack down to curb excesses in bosses' pay.

In its response to a consultation by the Department of Business, Innovation and Skills (BIS), the Investment Management Association (IMA) asset managers are major investors in companies in both the retail and institutional space.

Liz Murrall, IMA’s director of corporate governance and reporting, said: “Incentivising directors is a key driver of company behaviour and our members recognise the need to address any excesses in executive remuneration.”

The group’s submission said it supported a two-part remuneration report, setting out the remuneration policy and then how it has been implemented.

It said this would help investors hold companies to account, but warned the regulations were complex and prescriptive, meaning reports could become even longer and include more standardised language.

The IMA, whose members are responsible for the management of £4.2tn of assets, also supports a table outlining the key elements of remuneration and supporting information on pay, saying it would help improve comparability between companies.

However, it said there should be a table for each executive director, as remuneration varies according to individual directors’ responsibilities, which should be published every year – even when there has been no change in the remuneration policy.

However, the IMA opposes a statutory duty for companies to seek employees’ views on the executive pay policy.

“Whilst the remuneration committee should take account of the views of the wider organisation, we do not consider a company should be required to state whether, and if so how, it sought employee views on its remuneration policy,” its submission said.

“This would be likely to result in standardised reporting in that the process is likely to be generic.

“We do not consider the same could be said of the engagement with shareholders, particularly in view of the binding vote, and thus support the proposal that the report should state how shareholder views were taken into account.”

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
First-time buyer LTVs hit 13-month high

The average loan to value (LTV) level for first-time buyers hit its highest level in 13 months during August, according...